Tag Archives: National Association of Business Economics

Business Economists Feel Optimistic About the Future

After tax cuts and increased spending measures have passed through Congress, business economists are expressing optimism that there will be accelerated economic growth over the next two years. This is according to a survey conducted by the National Association for Business Economics. NABE projects that the economy will grow 2.9 percent this year, the best growth in the past three years. Just three months ago NABE was predicting only 2.5 percent growth.

NABE updated their prediction after Trump’s $1.5 billion tax cut passed through Congress successfully and legislatures agreed to raise the budget for military and domestic programs by $300 billion over the coming two years.

NABE forecasters believe that the tax cut and spending increase will increase economic growth by 0.45 percent this year, and 0.3 percent next year.

“In large part, the increase in growth prospects appears related to federal fiscal policies,” said David Altig, chairman of the NABE forecasting group and the director of research for the Federal Reserve Bank of Atlanta.

Trump officials claim that the administration’s economic policies will speed growth to annual rates of at least 3 percent. Most economists doubt this is possible. Many analysts believe that economic growth is more likely to be about 2 percent per year for the next ten years.

Poll Shows New Hiring Lagging Behind Recovery

A new survey conducted by the National Association of Business Economics showed that about two-thirds of those polled do not expect to see any change in employment in their companies over the coming six months. This is the largest number of employers in recent quarters who do not plan on taking on new employees, despite the fact that they do believe that the economy will prove to be a bit stronger this year.

The US economy seems to be reaching a plateau as the jobless rate falls to its lowest in three years, 8.5%, yet fewer businesses seem to be ready to hire new workers, compared to the previous industry poll.

The survey was done between December 15, 2011 and January 5, 2012 and found that 65% of those polled are expecting a rise in the gross domestic product of at least 2% between last year’s fourth quarter and this coming year’s fourth quarter.

This figure was higher than the 1.6% growth rate which economists suggested when a Reuters poll questioned them.

Approximately two-thirds of the polled companies do not believe that the economic crisis in Europe would have much of an impact on their own sales in the first half of 2012. A pessimistic view was taken by 27% of those surveyed, believing that they will see a decline in sales of 10 percent, or less.